1st Jun 2007 15:56
Tata Tea Limited01 June 2007 TATA TEA LIMITED 1, BISHOP LEFROY ROAD, Kolkata - 700020 Further to our letter no. SEC/SH/20/285 dated 21.5.2007, we enclose herewith theSummarised Audited Financial Results of the Company together with AuditedConsolidated Financial Results for the year ended 31.3.2007 which have beenapproved by the Board of Directors of the Company at their meeting held today atMumbai. At the same Board Meeting, the Directors have recommended a dividend of Rs.15/-per equity share of Rs. 10 each, fully paid, in respect of the financial year2006-07. Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for year ended March 31, 2007 Rs in crores Nine months Quarter ended Quarter ended Year ended March Year ended ended December March 2007 March 2006 2007 March 2006 2006 Income from 819.12 251.23 219.07 1,070.35 982.05 Operations Total Expenditure 636.40 236.27 207.91 872.67 806.26 (a) (Increase) / (39.07) 23.48 23.24 (15.59) 11.60 Decrease in stock (b) Purchase for 275.59 79.59 68.33 355.18 281.69 trading / Consumption of Raw Materials (c) Staff Costs 131.03 48.12 42.70 179.15 176.30 (d) Advertisement 68.31 24.44 24.27 92.75 89.99 and Sale charges (e) Other 200.54 60.64 49.37 261.18 246.68 Expenditure Profit before 182.72 14.96 11.16 197.68 175.79 Interest and Depreciation Interest (Net) 9.47 2.16 1.72 11.63 8.97 Depreciation 13.88 4.66 5.19 18.54 19.43 Profit before Tax 159.37 8.14 4.25 167.51 147.39 from Operations Income from 67.96 7.80 24.46 75.76 57.96 Investments (Net) Interest on loans (12.41) (14.27) - (26.68) - for acquisition Profit before Tax 214.92 1.67 28.71 216.59 205.35 and exceptional items Exceptional 127.15 6.03 (2.31) 133.18 25.17 Income/ (Expenditure) (Net) Profit before Tax 342.07 7.70 26.40 349.77 230.52 Provision for Taxation (a) Current 38.05 2.25 6.24 40.30 43.74 (b) Deferred (0.51) 0.76 (0.46) 0.25 (2.95) (c) Fringe 1.85 0.80 1.30 2.65 2.80 Benefit Tax Profit after Tax 302.68 3.89 19.32 306.57 186.93 Paid up Equity 59.03 59.03 56.22 59.03 56.22 Share Capital (face value of Rs 10 each) Reserves - - - 1462.83 1,083.18 excluding Revaluation Reserves Earnings per 53.43 0.66 3.44 53.56 33.25 share(Not annualised) - Rs Aggregate of Public Shareholdings (excludes shares held against GDRs) -Number of Shares 39,843,752 39,917,866 39,859,496 39,917,866 39,859,496 -Percentage of 67.49% 67.62% 70.90% 67.62% 70.90% Share holding Notes: 1. Income from operations for the year at Rs 1070.35 crores grew by 9% overthe previous year, mainly driven by branded tea sales which grew by 12% .Operating profits at Rs 167.51 crores improved by 14%, driven by branded teaperformance and the exit of the company from South India plantations (otherthan two estates). The Profit after Tax at Rs 306.57 crores increased by 64%driven by higher exceptional items. 2. Exceptional items during the year comprise of, profit on sale of tradeinvestments of Rs 133.78 crores and curtailment gain relating to retiralbenefits of Rs 8.18 crores and is net of amortization of amounts incurred onEmployee Separation Scheme of Rs 8.78 crores. 3. The Accounting Standard AS 15 (revised 2005) on Employee Benefits hasbeen adopted by the Company with effect from April 1, 2006. The incrementalobligations arising due to the early adoption of the Standard, amounting to Rs33.92 crores (net of tax), has been adjusted against the General Reserve, interms of the transitional provisions of the said Standard. The current year'sprovision is also based on the revised Standard, which has resulted in anadditional charge of Rs 2.23 crores. 4. Particulars of complaints received from the investors during the quarter,complaints resolved and those pending are as follows: Particulars of Complaints NumbersOutstanding as on January 1, 2007 NilReceived during the quarter 1Resolved during the quarter 1Outstanding as on March 31, 2007 Nil 5. During the year, the Company made a preferential issue of 28,10,000equity shares at a price of Rs 777 per share and an equal number of warrants toTata Sons Ltd. Against the warrants issued, an advance sum of Rs 77.70 perwarrant was received. The proceeds from the issue were utilized for investmentsmade in connection with acquisition of 25% stake in Energy Brands Inc, USA. TheEarnings Per Share has been calculated considering the prorata increase inequity share capital. Subsequent to the year end, on 2nd May 2007, the warrants issued were convertedto equity shares at a price of Rs 726.45 per share, as per applicableregulations. These shares along with the shares issued during the year underconsideration are entitled to full dividend for the year, in accordance with theterms of issue. 6. Under a scheme of reconstruction pursuant to sections 391,394 and otherapplicable provisions of the Companies Act, 1956, the Company has filed anapplication before the Hon'ble High Court of Calcutta to transfer theundertaking comprising of its North India Plantation Division to a new company.The transfer though operative from April 1, 2007, would be effective on receiptof all necessary approvals and completion of formalities as laid down in thescheme. The aggregate consideration for the transaction would be Rs 359 crores,in addition to transfer of agreed balances of current assets and currentliabilities at book values and certain other related assets at mutually agreedvalues. The Company expects to retain a minority stake in the new entity andwill be issued equity shares in part settlement of the consideration fortransfer. As at 31st March 2007, the said business has been treated as a discontinuingbusiness in terms of Accounting Standard 24- Discontinuing Business. 7. During the year, the Company made an investment of Rs 763.39 croresthrough its subsidiaries, to acquire 25% stake in Energy Brands Inc, USA (EBI).The said investment was partly financed by bridge loans, in respect of whichinterest of Rs 26.68 crores was incurred during the year. Subsequent, to theyear end, the Company has decided to divest its stake in EBI. 8. North India Plantation operations are seasonal in nature withinsignificant production during the fourth quarter. Therefore, the Company'sfourth quarter performance is normally lower than the previous quarters. 9. Previous period's figures have been recast to the extent necessary,to conform to the current period's figures. 10. The Board of Directors has recommended a dividend payment of 150%(Previous year 120%). 11. The aforementioned results were reviewed by the Audit Committee of theBoard on May 30, 2007 and subsequently taken on record by the Board of Directorsat its Meeting held on June 1, 2007. The statutory auditors of the company haveaudited these results. Ratan N Tata Mumbai: June 1, 2007 (Chairman) Tata Tea Limited Registered Office : 1 Bishop Lefroy Road Kolkata 700020 Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for the year ended 31st March, 2007 Rs in crores Previous Year Nine months ended Quarter ended Year ended ended December 31 March 31 March 31 March 31 2006 2007 2006 2007 2006 1 Segment Revenue (a)Tea 817.82 250.00 218.58 1067.82 978.89 (b)Others 0.30 0.83 0.22 1.13 2.79 818.12 250.83 218.80 1068.95 981.68 Less: Inter Segment Revenue - - - - - Net Segment Revenue 818.12 250.83 218.80 1068.95 981.68 2 Segment Results (a)Tea 200.68 20.96 20.08 221.64 205.66 (b)Others 0.04 0.08 0.06 0.12 (0.69) 200.72 21.04 20.14 221.76 204.97 Less: Interest(net) 9.47 2.16 1.72 11.63 8.97 Less: Interest on loans for 12.41 14.27 - 26.68 - acquisition Add : Unallocable income net of unallocable expenditure 163.23 3.09 7.98 166.32 34.52 Total Profit before Tax 342.07 7.70 26.40 349.77 230.52 3 Segment Capital Employed (a)Tea 413.94 370.18 315.91 370.18 315.91 (b)Others 0.03 0.31 (0.48) 0.31 (0.48) Notes: 1 The definitions of the internal business segmentation and the activitities encompassed therein are as follows: Tea : Cultivation & manufacture of black tea and instant tea,tea buying / blending and sale of tea in bulk or value added form. Others Production and Sale of minor crops, others etc. 2 The segment wise revenue, results and capital employed figures relate to the respective amounts directly identifiable to each of the segments. Unallocable expenditure include expenses incurred on common services at the corporate level and relate to the Company as a whole. Unallocable income includes income from investments and exceptional income (net). Audited Consolidated Financial Results for the year ended March 31, 2007 Rs in crores Previous Year ended Year ended March 31, 2007 March 31, 2006 Income from Operations 4044.55 3123.92 Total Expenditure 3312.85 2561.45 (a) (Increase)/Decrease in stock (47.31) (12.94) (b) Purchases for Trading / Raw Materials Consumed 1094.21 724.98 (c) Staff Costs 492.53 429.94 (d) Advertisment and Sales Charges 846.70 664.19 (e) Other Expenditure 926.72 755.28 Profit before Interest and Depreciation 731.70 562.47 Operating Interest (Net) 106.82 96.90 Depreciation 96.71 75.84 Profit Before Tax from Operations 528.17 389.73 Income from Investments (net) 58.67 26.94 Interest on borrowings for Acquisition (166.11) (5.53) Exchange Gain on restatement of Foreign Currency Loan 34.72 - Profit before Tax and Exceptional Items 455.45 411.14 Exceptional Income / (Expenditure) (Net) 110.16 7.26 Profit before Tax 565.61 418.40 Provision for Taxation (a) Current Taxation 99.73 121.44 (b) Deferred Taxation 7.87 (3.58) Profit after Tax 458.01 300.54 Share of Profit from Associated Undertakings 17.95 11.70 Minority Interest 32.61 13.09 Group Consolidated Net Profit 443.35 299.15 Paid up Equity Share Capital (face value of Rs 10 each) 59.03 56.22 Reserves excluding Revaluation Reserve 2044.20 1491.52 Basic Earnings per Share (Rs) 77.46 53.21 Diluted Earnings per Share (Rs) 77.46 49.40 Notes: 1. The Consolidated Income from Operations for the year at Rs 4044.55 croreswas 29% higher than the previous year. The increase is driven by higher brandedtea sales coupled with inclusion of income pertaining to the acquisitions ofJemca and Eight O' Clock Coffee. Profit before Tax from Operations at Rs528.17 crores increased by 36% over the previous year. The Group ConsolidatedNet Profit at Rs 443.35 crores has increased by 48% mainly due to higherexceptional items. 2. Interest on borrowings for acquisition represents interest on borrowingsfor purchase of Energy Brands Inc., Eight O' Clock Coffee (includingthrough Tata Coffee Ltd), Jemca and Good Earth. 3. Exceptional items during the year includes profit on sale of investments(Rs 133.78 crores) and curtailment gain relating to retiral benefits of (Rs 8.18crores) in the holding company and profit on sale of property by an Indiansubsidiary (Rs 4.53 crores) partly offset by amortization of amounts expended onEmployee Separation Scheme in the holding company and an Indian subsidiary (Rs9.82 crores), amortization of loan costs (Rs 12.36 crores) and reorganizationexpenses in an overseas subsidiary (Rs 14.15 crores). 4. Under Indian GAAP, The Tetley Group's (the Company's 77.78%UK subsidiary) turnover for the Financial Year 2006/07 was Rs 2297.80 crorescompared to Rs 2033.16 crores in the previous year. The Profit before Tax,interest on acquisitions and exceptional items was Rs 253.21 crores compared toRs 202.44 crores in the previous year. PAT at Rs 126.52 crores was however lowerthan previous year's figure of Rs 146.55 crores mainly on account ofinterest charge of Rs 59.96 crores (net of tax) due to acquisitions. 5. During the year, the Holding Company made a preferential issue of28,10,000 equity shares at a price of Rs 777 per share and an equal number ofwarrants to Tata Sons Ltd. Against the warrants issued, an advance sum of Rs77.70 per warrant was received. The Earnings per Share has been calculatedconsidering the pro-rata increase in equity share capital. Subsequent to the year end, on May 2, 2007, the warrants issued were convertedto equity shares at a price of Rs 726.45 per share, as per applicableregulations. These shares along with the shares issued during the year underconsideration are entitled to full dividend for the year, in accordance with theterms of issue. 6. Under a scheme of reconstruction pursuant to sections 391, 394 and otherapplicable provisions of the Companies Act, 1956, the Holding Company has filedan application before the Hon'ble High Court of Calcutta to transfer theundertaking comprising of its North India Plantation Division to a new company.The transfer though operative from April 1, 2007, would be effective on receiptof all necessary approvals and completion of formalities as laid down in thescheme. The aggregate consideration for the transaction would be Rs 359 crores,in addition to transfer of agreed balances of current assets and currentliabilities at book values and certain other related assets at mutually agreedvalues. The Holding Company expects to retain a minority stake in the new entityand will be issued equity shares in part settlement of the consideration fortransfer. 7. The holding company had through The Tetley Group acquired a 25% stake inEnergy Brand Inc, USA (EBI) in October 2006 with a 5% stake being acquired by asubsidiary of Tata Sons namely Tata Ltd (UK). The aggregate consideration forthe purchase of this 30% holding was US $ 677 million based on an enterprisevaluation of US $ 2.2 Billion of EBI. The above results include the pro ratashare of results of Energy Brand Inc as an associate company. The Tetley Grouphas subsequent to the year end, conditionally agreed to sell the shares of EBIfor an approximate consideration of $ 1.2 billion, which is subject toadjustment for certain transaction and other costs, in response to an offerreceived by EBI from The Coca Cola Company for acquiring 100% of the capital ofEBI. This consideration reflects an underlying enterprise value of US $ 4.2billion of EBI. 8. Previous period's figures have been regrouped, to the extentnecessary, to conform to current period's figures. These figures are notstrictly comparable with figures reported for the current year, due to businessacquisitions in the current year. 9. The aforementioned results were reviewed by the Audit Committee of theBoard on May 30, 2007 and subsequently taken on record by the Board of Directorsat its Meeting held on June 1, 2007. The statutory auditors of the company haveaudited these results. Ratan N TataMumbai: June 1, 2007 (Chairman) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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